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1993-03-15 Regular Meeting NEW HANOVER COUNTY BOARD OF COMMISSIONERS REGULAR MEETING, MARCH 15, 1993 BOOK 23 PAGE 359 ASSEMBLY The New Hanover County Board of Commissioners met in Regular Session on Monday, March 15, 1993, at 9:30 A.M. in Courtroom 401 in the New Hanover County Judicial Building, 4th & Princess Streets, Wilmington, North Carolina. Members present were: Commissioners Sandra Barone; WilliamA. Caster; William E. Sisson, Jr.; vice-Chairman E. L. Mathews, Jr.; Chairman, Robert G. Greer; County Manager, Allen O'Neal; County Attorney, Wanda M. Copley; and Clerk to the Board, Lucie F. Harrell. Chairman Greer called the meeting to order and announced the meeting room has been changed due to no electricity in the New Hanover County Courthouse as a result of the weekend storm. All persons present were welcomed. INVOCATION AND PLEDGE OF ALLEGIANCE Reverend Roger Horne, Pastor of Westminster Presbyterian Church, gave the invocation. vice-Chairman E. L. Mathews, Jr. led the audience ln the Pledge of Allegiance to the Flag. NON-AGENDA ITEMS Chairman Greer inquired as to whether anyone from the general public would like to present an item not listed on the Regular Agenda or comment on an item listed on the Consent Agenda. The following item was presented. Report on the Activities of the New Hanover County Commission for Women Ms. Brenda Junious, Chairman of the New Hanover County Commission for Women, presented a report on the many activities of the Commission for the past year. Emphasis was placed on the special showing of "Don't Call Me Honey", portraits of women in their work, and the progress that has been made in the acceptance of women in all occupations. This event was co-sponsored by Cape Fear Community College and Cape Fear Museum. APPROVAL OF CONSENT AGENDA Motion: Vice-Chairman Mathews MOVED, SECONDED by Commissioner Sisson to approve the Consent Agenda as presented. Upon vote, the MOTION CARRIED UNANIMOUSLY. CONSENT AGENDA Approval of Minutes The Commissioners approved the minutes Facility Work Session held on February 24, the Clerk to the Board. of the Waste-to-Energy 1993, as presented by Approval of Tax Collection Reports Through February 28, 1993 The Commissioners approved the following Tax Collection Reports through February 28, 1993, as presented by the Collector of Revenue: New Hanover County Tax Collections New Hanover County Fire District Tax Collections Copies of the reports are hereby incorporated as a part of the minutes and are contained in Exhibit Book XX, Page 23. Release of Value - Tax Department The Commissioners approved the following release of listing penalties as the taxpayers certified they listed on time in another county: Donnee, John Grimaldi, John $10.68 $18.27 NEW HANOVER COUNTY BOARD OF COMMISSIONERS REGULAR MEETING, MARCH 15, 1993 BOOK 23 PAGE 360 Riddick, Sid Steuer, William T., Jr. $10.08 $ 4.29 Appeal of Civil Penalty by David Merriman - Tax Department The Commissioners upheld the Tax Administrator's recommendation to assess the civil penalty to David Merriman for failure to list his 1985 Volkswagen. The appellant was discovered for not listing the vehicle in 1991 and again in 1992. As previously enacted by the Board of County Commissioners, the civil penalty should be charged on the second offense. Adoption of Resolution Requesting Addition of Roads in Lansdowne South to the State Highway System The Commissioners adopted a resolution requesting the addition of roads in Lansdowne South (Sections 3, 4, and 5) to the State Highway System. A copy of the resolution is hereby incorporated as a part of the minutes and is contained in Exhibit Book XX, Page 23. Authorization for Submission of Retired Senior Volunteer Program (RSVP) 1993-94 ACTION Grant - Department of Aging The Commissioners authorized the Department of Aging to submit the Retired Senior Volunteer Program 1993-94 ACTION GRANT. This grant supports funding for 800 volunteers working in 60 stations in New Hanover County. The total cost of the program is $90,176 with a County contribution of $42,634 and ACTION grant funding of $47,542. Authorization to Reclassify a Transcriber II position to a Transcriber I position in the Department of Social Services The Commissioners approved the reclassification of a Transcriber II position in the Word Processing Unit of the Department of Social Services to a Transcriber I position as requested by the Director of Social Services and recommended by the Human Resources Director. The incumbent in this position recently resigned; therefore, in reviewing the duties of the position, it has been determined that the responsibilities no longer require the higher classification. PRESENTATION OF NEW HANOVER COUNTY EMPLOYEE SERVICE AWARDS Chairman Greer, on behalf of the Board, expressed appreciation to the following employees for their dedicated service to New Hanover County and presented appropriate service awards: Name David Butts Ann Barkley Joan Galloway Annie Stalling Joe McQueen John Roggina Adelaide Stanley Department No. of Years Management Information Systems 5 Department of Social Services 10 Library 10 Register of Deeds 15 Sheriff 20 Sheriff's Department 20 Health Department 20 The following persons were unable to attend and will be forwarded service awards: Janice Dailey Linda Moore Kenda Wigand Faye B. Jacobs Stevenson Rich Betty McCorkle Inspections Department Department of Social Services Department of Social Services Department of Aging Property Management Health Department 5 5 5 5 10 10 ADOPTION OF RESOLUTION CONFIRMING THE SALE OF $5,040,000 GENERAL OBLIGATION REFUNDING BONDS, SERIES 1993 Motion: Commissioner Barone MOVED, SECONDED by Commissioner Caster to adopt the resolution confirming the sale of $5,040,000 General NEW HANOVER COUNTY BOARD OF COMMISSIONERS REGULAR MEETING, MARCH 15, 1993 BOOK 23 PAGE 361 Obligation Refunding Bonds, Series, 1993. CARRIED UNANIMOUSLY. Upon vote, the MOTION A copy of the resolution is hereby incorporated as a part of the minutes and lS contained in Exhibit Book XX, Page 23. PRESENTATION ON GLOBAL TRANSPARK, INC. County Manager O'Neal introduced Nancy Stallings, Executive Director of N. C. Global TransPark, Inc., to present a presentation on the proposed project. Ms. Stallings reported Global TransPark, Inc. (GTP, Inc.) was created to assist the N. C. Air Cargo Airport Authority in development of the N. C. Global TransPark. A Task Force composed of Duplin, Lenoir, Craven, pitt, Wayne, wilson, Edgecombe, and Nash counties have worked diligently to secure the Global TransPark for eastern North Carolina. The Global TransPark will be a unique combination of a computer age airport and transportation system with a 21st Century manufacturing and distribution complex. Manufacturing and distribution facilities will locate along the taxiways at the airport or at plant sites near the airport. This will enable products to be moved quickly on and off planes, in and out of facilities, and from destinations across the country and around the world. The corporation is a non-profit corporation established in 1992 which has applied to the Internal Revenue Service to be qualified under Section 501(c) (3). The corporation has no shareholders and pays no dividends. The major components of the TransPark are as follows: -Computerized Central Cargo Complex -Internal Automated Rail and Distribution Systems -Transportation links with Railroads, Ports, and Highways The building of the Global TransPark in Lenior County will benefit all of North Carolina, especially eastern North Carolina. In order to build this facility, cooperation among the state, local governments, private sector and federal government will be required. The following lssues were presented: CONTROL BY LOCAL GOVERNMENTS: Each participating county will have one member on the Board of Directors of Global TransPark, Inc. REVOLVING FUNDS: It is anticipated that funds received by the Global TransPark, Inc. Foundation will be a revolving fund spent to promote industry and repaid over a period of time. FUNDING PROPOSAL FOR LOCAL GOVERNMENTS: The Global TransPark Authority has suggested that $50 million would be needed to fund the project. In addition to these funds, it is proposed that $30 million be raised from the private sector with $20 million from local governments. New Hanover County was requested to consider the following requests: -Adopt a resolution to request the N. C. Legislature to create an Eastern Economic Development Zone. This zone would be a regional compact consisting of participating counties which would equate to a special taxing district and have the same authority. -Adopt a resolution requesting legislative authority to impose a one-half cent sales tax for a period of twelve months, or a one-cent sales tax for six months. NEW HANOVER COUNTY BOARD OF COMMISSIONERS REGULAR MEETING, MARCH 15, 1993 BOOK 23 PAGE 362 -Contribution of $10,000 from New Hanover County as seed money for the project. Former N. C. Senator Henson Barnes reported on the economic galn to eastern North Carolina, particularly to the Wilmington State Port, by becoming a part of the Eastern Economic Development Zone. Emphasis was placed on the thousands of jobs that will locate at the TransPark and throughout the entire region due to easy access to overseas markets for North Carolina companies. At the present time, South Carolina and Arkansas have recently become very interested in this type of facility; therefore, North Carolina must move forward with the project. The Commissioners were urged to participate in the project by contributing $10,000 and levying a one-half cent sales tax for one year to be given to Global Transpark, Inc. Mr. Andy Anderson, a County Commissioner of Wayne County, commented on the importance of competing in world-wide trade and stated the Global Transpark would allow the State of North Carolina to become a center for transporting goods to every country in the world. The initial investment, including funds collected from the sales tax, will be more than returned to participating counties with the creation of jobs and economic growth that will occur from this project. The Commissioners were urged to become a part of the Eastern Economic Development Zone. A lengthy discussion was held on levying a one-half cent sales tax and the amount of funds that would be collected by New Hanover County in comparison to other counties participating in the proj ect. It is proj ected that New Hanover County (including municipalities) would collect $7.5 million in the one-half cent sales tax for one year with other counties collecting from $1.5 million to $3 million dollars. Discussion was held on the composition of the Board of Directors of Global TransPark, Inc. Senator Barnes reported on the number of members that will be appointed from New Hanover County representing the Board of County Commissioners, the State Port, and uNC-Wilmington. Commissioner Sisson expressed concern for rushing into this matter and recommended postponing this item for further study of the environmental impact and the amount of money to be invested by New Hanover County. Concern was also expressed for hidden costs and the types of products and industries that will locate in eastern North Carolina which could negatively impact the estuarine and primary nursery areas as well as air quality. Ms. Stalling reported all environmental concerns have been met. Consensus: After further discussion of County needs and the amount of funds involved, it was the consensus of the Board to defer action on this request to allow time for further study of this proposal. This item is to be placed on the agenda for April 5, 1993. Chairman Greer expressed appreciation to Ms. Stallings and former Senator Henson Barnes for an informative presentation. APPROVAL FOR DEVELOPMENT OF COMMUNITY-WIDE DISASTER TASK FORCE AND AUTHORIZATION FOR THREE-FOURTHS CLERICAL POSITION TO BE INCREASED TO A FULL-TIME POSITION FOR THREE WEEKS - DEPARTMENT OF EMERGENCY SERVICES Director of Emergency Management, Dan Summers, reported on the storm of March 13, 1993, and requested the Commissioners to approve the following items: Continue the State of Emergency declared on March 13, 1993, at 4:30 P.M. NEW HANOVER COUNTY BOARD OF COMMISSIONERS REGULAR MEETING, MARCH 15, 1993 BOOK 23 PAGE 363 Authorize the County Manager and Director of Emergency Management, to delegate a community-wide Disaster Task Force for assessment of damage. Transfer $5,000 from Contingencies to the Department of Emergency Management to provide funding for emergency supplies and expenses. Authorize the three-fourths Clerical position to become full- time for the next three weeks due to the increased workload with preparing reports and documents that will have to be provided to state and federal agencies for damage assessments. Motion: Commissioner Barone MOVED, SECONDED by Vice-Chairman Mathews to authorize the County Manager and Director of Emergency Management to delegate a community-wide Disaster Task Force. Upon vote, the MOTION CARRIED UNANIMOUSLY. Motion: After discussion of the need to have funds available for emergency supplies and expenses, Commissioner Sisson MOVED, SECONDED by Commissioner Barone to approve a $5,000 line item transfer from Contingencies to the Emergency Management Department. Upon vote, the MOTION CARRIED UNANIMOUSLY. Motion: After discussion of receiving federal reimbursement for the additional staff hours, Vice-Chairman Mathews MOVED, SECONDED by Commissioner Sisson to approve the three-fourths Clerical posi tion in the Emergency Management Department to a full time posi tion for a maximum of three weeks in order to handle the increased workload created by the storm. Upon vote, the MOTION CARRIED UNANIMOUSLY. Commissioner Sisson expressed concern for the lack of notification to persons with boats and the damage that occurred due to no advance warning. He recommended that a procedure be established whereby advance notification will be given to provide ample time for boat owners to remove boats and place them in a secure place. Also, a policy should be developed for better control of sightseers visiting the local beaches during an emergency event. Director of Emergency Management, Dan Summers, reported that the National Weather Service was out of operation on Saturday with no local weather statements, therefore, no one received advanced warning of the storm. Normally, announcements are made in advance allowing persons ample time to remove and protect their boats and property. As to sightseers, the County cannot override the jurisdiction of beach communi ties; however, discussion will be held with each of the beach communities. BREAK Chairman Greer called for a break from 10:50 A.M. until 11:05 A.M. TAX APPEAL FOR DISCOVERY OF REAL AND PERSONAL PROPERTY OWNED BY CAPE FEAR DEVELOPMENT CORPORATION A.M.E ZION CHURCH Tax Administrator, Roland Register, reported on the discovery and stated the Tax Department does not question the ownership of the Shaw Speaks Community Center by the Cape Fear Conference A.M.E. Zion Church nor does the Tax Department question the owner being a religious organization. The Tax Department does, however, question whether the use of the property qualifies for exemption and whether the use is gratuitous? After a thorough review of the appeal, the Tax Department concludes that the primary use of the Shaw Speaks Community Center is for day care, after school care, athletic events, and fee-based activities; therefore, the use is not charitably provided. The actual religious use of space is very minimal, and not on a regular schedule. NEW HANOVER COUNTY BOARD OF COMMISSIONERS REGULAR MEETING, MARCH 15, 1993 BOOK 23 PAGE 364 A similar case occurred in Stokes County with the following court precedents cited by the Staff Attorney: -Day care, even in a church, does not qualify for exemption. In addition to the building, the vehicles should be taxed. -Even if the revenues fund the non-profit entity, the revenues constitute business revenues and the activity is a business, not a charity. -Every owner of property is entitled by the Constitution to EQUAL PROTECTION. If one day care must pay taxes, whether they have vehicles or not, then all day care centers should pay taxes. The Tax Department recommends that full exemption for the Shaw Speaks Community Center be denied and that the actual portion regularly used on the second floor by the A.M.E Zion Church for management purposes be exempted at a value apportioned by the County's Appraisal Supervisor. In addition, the vehicles used to support the day care and after school care should be fully taxed. Chairman Greer inquired as to whether the appellant would like to comment. The following remarks were received: Attorney Franklin L. Block, representing the Shaw Speaks Community Center, reported the Center is a non-profit organization sponsored by the Cape Fear Conference A.M.E. Zion Church. As set forth in their mission statement, the purpose is to help eliminate the social and economic imbalances of all persons who have limited access into the mainstream of society. The goal is to help eliminate the imbalances through a variety of social and economic programs which will enhance the development of individuals and the community in which they live. The Shaw Speaks Community Center operates in a building located at 708 and 718 South Third Street and is owned by the Cape Fear Development Corporation A.M.E. Zion Church. This entity is a North Carolina non-profit corporation, which was registered with the Secretary of State on December 14, 1970, to acquire and hold title to church property of all kinds for the benefit of the members and churches of the Cape Fear Conference A.M. E. Zion Church. The building in question was formerly the Brigade Boys Club of Wilmington and was purchased by the A.M.E. Zion Church in 1985. It was completely renovated to be used as a non-profit Community Service Center which would serve the needs of the Cape Fear Conference and the community in which it was located. The following programs are operated: -Shaw Speaks Child Development Center, a licensed center permitted by the N. C. Department of Human Resources -Family Life -Continuing Education -Theological Education -Athletics -Cultural Arts -Other Community Development Programs In 1985 the A.M.E. Zion Church applied for and received a property tax exemption pursuant to N.C.G.S. 105-278.3 as a Religious Educational Institution. It continued to serve the community on a tax exempt basis until 1992 when it was notified by NEW HANOVER COUNTY BOARD OF COMMISSIONERS REGULAR MEETING, MARCH 15, 1993 BOOK 23 PAGE 365 the New Hanover Tax Administrator's Office that certain vehicles owned by the Center were subject to County property taxes. In 1993 the New Hanover County Tax Administrator determined that all the real property used by the Center was subject to property taxes on the grounds that the primary use of the property is for day care and that the property is used by others for a fee. The Cape Fear Development Corporation A.M.E. zion Church contests this determination and requests the Board of County Commissioners to find that the real and personal property ln question is exempt from taxation. In this case Cape Fear Development Corporation A.M.E. zion Church is an entity of the Cape Fear Conference A.M.E. Zion Church which holds and takes title to real property owned by the Church in the Conference which is not otherwise owned by the membership of a congregation. This non-profit corporation also stands as guarantors on Deeds of Trust of the churches in the area serviced by the Conference. The Shaw Speaks Community Center is a building owned by the A.M.E. Zion Church, which actually makes all of the mortgage payments. Therefore, the provisions of N.C.G.S. 105- 2778.3(c) (2) have been complied with. Also, terms of N.C.G.S. 105-278.3 (a) (2) require that the property be "occupied gratuitously by one other than the owner". In this case it is occupied by Shaw Speaks Community Center and there is no rental paid to the A.M.E. Zion Church for the use of the property. The debt service on the mortgage is not a part of the Shaw Speaks Communi ty Center budget. Shaw Speaks then, in turn, uses the property for the following purposes, all of which appear to fall within the definition of the statute: -Shaw Speaks Child Development Center: This center is for an educational purpose with its objective being education or instruction of human beings (N.C.G.S. 105-178.3(d) (3). Although it is compensated in part for these services, either by the user or by some governmental agency, it remains a non- profit entity. The tuition charged is $220 per child, per month plus additional activity costs while the actual cost of operating the center is about $440 per child per month including additional activity costs. The difference in the operating costs is made up by the Cape Fear Conference A.M.E. Zion Church. -Familv Life would qualify as a charitable purpose under N.C.G.S. 105-278.3 (d) (2). -Continuing Education would quality as an educational purpose under N.C.G.S. 105-278.3 (d) (3). -Theological Education would quality as a religious purpose under N.C.G.S. 105-278.3(d) (1) -Athletics would qualify as a charitable purpose under N.C.G.S. 105-278.3(d) (2) and cultural purpose under N.C.G.S. 105-278.3 (d) (5) -Cultural Arts would qualify as a cultural purpose under N.C.G.S. 105-278.3 (d) (2). -Other Community Development Programs would qualify under N.C.G.S. 105-278.3(d) (2) The real property and vehicles operated by Shaw Speaks Community Center are also exempt from taxation under the terms of N.C.G.S. 105-278.3(c). In this case the vehicles are owned by the Shaw Speaks Community Center which is a local unit of a church or religious body. Therefore, N.C.G.S. 278.3(c) is complied with. NEW HANOVER COUNTY BOARD OF COMMISSIONERS REGULAR MEETING, MARCH 15, 1993 BOOK 23 PAGE 366 The vehicles are then used gratuitously and exclusively by the Shaw Speaks Development Center in order for them to carry out their non-profit educational mission. Therefore, the motor vehicles in question are exempt from property taxes. There is a contention that parts of the building (kitchen and gym) have been rented out for a fee and therefore their tax exempt status is defeated. N.C.G.S. 105-278.4(b) addresses this problem ln the following manner: (b) The fact that a building or facility is incidentally available to and patronized by the general public, so long as there is no material amount of business or patronage with the general public, shall not defeat the exemption granted by this section. In this case, the A.M.E. Zion Church contends there is no material amount of business or patronage with the public. In 1992 a total of slightly over 1% of the operating revenue of the center was generated by outside fees. Much of the revenue came from church members who rented the gym for such things as wedding receptions and other church related functions. In any event, the total amount collected did not materially affect the budget of the center. Attorney Block introduced Reverend Jacobs, the Executive Director of the Shaw Speaks Community Center; Ms. Dorothy Coleman, Executive Director of the Child Development Center; and Dr. Jack Manock, a member of the Board of Directors. Reverend Jacobs, Ms. Coleman, and Dr. Jack Manock reported on the many programs provided to the community and the needs that are fulfilled by the Shaw Speaks Community Center. The Center is supported primarily by grants, the private/public sector; internal programming; and the Cape Fear Development Corporation A.M.E zion Church, which provides 50% of the Center's budget annually. Emphasis was placed on this being a non-profit organization and the need to continue its tax exempt status. Tax Administrator Register reported on visiting the Center and observing the small office area and library on the second floor which is the actual religious area of the building. The significant use of the building is for day care which utilizes most of the ground floor. Day care according to the State is not a religious purpose. Also, the fee of $220 per month per child is paid for day care and according to Attorney Block, this is far short of the actual cost of $440 per child. After contacting similar day care centers around town, it was found that St. Thomas charges $270 per month and Creative World charges an average of $270 per month. The Early Childhood Learning Center, more of a premium day care with "degreed" teachers charges only $350 per month. It appears that Shaw Speaks Community Center does not have a charitable day care; therefore, the Tax Department concludes that the primary use of the Center is day care, after school care, athletic events, and fee-based activities and recommends upholding a taxable status for the real and personal property. The Center is not fully and exclusively a religious organization and cannot by law be exempted from paying taxes on real and personal property. Chairman Greer commented on the intent of the law to provide a tax exempt status to a religious non-profit organization providing a needed service to the community and stated in his opinion the Center falls within these guidelines. Commissioner Sisson commented on tax audits and stated they are very much needed to avoid unqualified persons from not paying taxes. However, the Shaw Speaks Community Center is a charitable organization that operates as a non-profit agency and utilizes volunteers to provide day care and other programs to the community. NEW HANOVER COUNTY BOARD OF COMMISSIONERS REGULAR MEETING, MARCH 15, 1993 BOOK 23 PAGE 367 Motion: Vice-Chairman Mathews commented on the evidence presented showing that the Shaw Speaks Community Center does not operate as a "for profit" organization and MOVED, SECONDED by Commissioner Sisson to uphold the appeal and grant the tax exempt status. Upon vote, the MOTION CARRIED UNANIMOUSLY. BREAK Chairman Greer recessed the meeting for a break from 11:55 A.M. until 12:02 P.M. TAX APPEAL FOR CIVIL PENALTY SUBMITTED BY RAVI KALIA Tax Administrator, Roland Register, reported the appellant, Ravi Kalia, is employed by the University of North Carolina at Wilmington and claims the Tax Department did not furnish adequate information on listing procedures and feels the information provided was misleading which resulted in a delayed payment. As written in the appeal, Mr. Kalia believes the late payment caused the $100 penalty when in reality the civil penalty was on his original bill long before the January 5, 1993 deadline. When the County began the civil penalty in 1988, the Board of County Commissioners directed the Tax Administrator to investigate every appeal. If the person had not previously been discovered, the Board would release the penalty. If the person had been previously discovered, the Board would not release the penalty. The appellant was discovered for not listing his vehicle in 1991 and again in 1992. On the second offense, the civil penalty was applied; therefore, the Tax Department recommends upholding the penalty as done by previous Boards. Mr. Ravi Kalia expressed concern for the manner in which he received notification for listing his vehicle and reported on the unfairness of the $100 penalty due to a totally confusing listing process. A paper trail was presented on the notification procedure and according to Mr. Kalia the communication and notification of the Tax Department was extremely poor. As a new citizen moving from California where all vehicles are automatically listed, it was very confusing to work with the Tax Department's vehicle listing procedure. Also, when requesting an appeal, he was notified that the appeal would be heard by the Board of County Commissioners on Monday, March 15, 1993, until Thursday, March 10, 1993; therefore, in his opinion with the amount of confusion involved and the poor notification process, the penalty should be released. Chairman Greer commented on the vehicle not being listed in 1991 and inquired as to why the vehicle was not listed in 1992? Mr. Kalia reported that he assumed once the vehicle was registered and listed, he would automatically be listed and billed for 1992 taxes. Commissioner Barone commented on the poor notification and the statement printed on the tax form, which reads as follows, "if the information is correct, you do not need to respond" and she expressed concern for this verbiage being very confusing. Tax Administrator Register reported the N. C. Department of Revenue recommended usage of this verbiage in order to avoid slowing down the listing process. This clause has been on the listing form since 1988. Motion: Commissioner Barone MOVED to release the $100 penalty assessed due to the amount of confusion with the notification process. THE MOTION FAILED DUE TO NOT RECEIVING A SECOND. Motion: Vice-Chairman Mathews MOVED, SECONDED by Commissioner Caster to uphold the recommendation of the Tax Administrator and assess the penalty as charged. Upon vote, the MOTION CARRIED AS FOLLOWS: NEW HANOVER COUNTY BOARD OF COMMISSIONERS REGULAR MEETING, MARCH 15, 1993 BOOK 23 PAGE 368 Voting Aye: Commissioner Caster Commissioner Sisson Vice-Chairman Mathews Chairman Greer Voting Nay: Commissioner Barone BUILDING PERMIT FEE SCHEDULE TO REMAIN UNCHANGED Director of Inspections, Sky Conklin, presented a revised Building Permit Fee Schedule increasing building permits only for all structures except single family homes less than 1,200 square feet. The increase in fees is accomplished by raising the per square foot cost factor from $43.00 to $46.00, $49.00 and $58.00 as the house increases in size. For example, a 1,500 square foot house, two full baths, and a 440 square foot attached garage under the current Building Permit Schedule would be valued at $74,620. Under the proposed schedule, the value would increase to $79,120; therefore, when adding all permitting fees together, the cost would increase from $407 to $425. For commercial construction the per square foot cost factor has been taken from the N. C. Southern Building Code. The permit fee would now be calculated at $4.00 per thousand dollars of value instead of $3.75 per thousand dollars of value. For construction of a 20,000 square foot commercial metal pre-engineered building divided into five businesses with each business receiving 4,000 square feet and 1,000 of the 4,000 square feet used for office and/or retail over-the-counter space with the remaining 3,000 square feet for storage, the building permit under the current schedule would cost $2,174 and under the proposed schedule would cost $2,315. The increased schedule is presented in support of the projected Inspections Department Budget for FY 1993-94 in keeping with the County's policy to have the Inspections Department largely supported by permitting fees. If the County Commissioners decided to fund the Fire Code Enforcement Division from Fire District tax funds, this recommendation could be withdrawn. Mr. Steve Aten, President of the Home Builders Association, reported on the cooperative working relationship between the Home Builders Association and the Inspections Director and staff. He commented on the Inspections Department being unique since its operational costs are funded almost solely from fees collected. Based on next year's projected growth rate in construction and the figures presented in the proposed FY 1993-94 Budget, building should continue to expand and the amount of fees collected should exceed the operational costs; therefore, the proposed increase in the Building Permit Fee Schedule or any other fees should remain unchanged. Chairman Greer inquired as to whether the Inspections Department totally funded itself last year from fees collected? Inspections Director Conklin reported that the Inspections Department fell short of completely funding itself by $3,600. Discussion was held on the need to upgrade the telephone system and hire another Zoning Enforcement Officer. Chairman Greer asked Mr. Aten if he felt another Zoning Enforcement Officer was needed? Mr. Aten responded that given a choice, he would immediately upgrade the telephone system and then hire another Zoning Enforcement Officer. Chairman Greer expressed appreciation to Mr. Aten for his input and requested that he inform the Home Builders Association that the County desires to work with the builders, and if specific needs arise, it would be helpful to receive their input. NEW HANOVER COUNTY BOARD OF COMMISSIONERS REGULAR MEETING, MARCH 15, 1993 BOOK 23 PAGE 369 Commissioner Barone commented on the Zoning Board of Adjustment, which is composed of members representing all facets of the community, and recommended utilizing their services for review of all Zoning Regulations to see if they can be streamlined, or if the turn around time can be shortened before hiring another Enforcement Zoning Officer. Commissioner Sisson reported that the Zoning Board of Adjustment serves as the body to hear appeals from decisions rendered by the Chief Zoning Enforcement Officer under the present Zoning Ordinance. The Planning Board is more qualified to review the Zoning Regulations. Several years ago, a blue ribbon advisory board was appointed to review the Zoning Regulations to prepare revisions that would update the code; however, no action was taken on these recommendations. After further discussion of community participation, Commissioner Barone recommended contacting the commercial sector to receive their input. Consensus: It was the consensus of the Board to allow the Building Fee Permit Schedule to remain unchanged and fund the Fire Code Enforcement Division from the Fire Service District Budget. APPROVAL OF RECOMMENDATIONS SUBMITTED BY THE HUMAN SERVICES ALLOCATION ADVISORY COMMITTEE FOR FUNDING OF COMMUNITY BASED ALTERNATIVES PROGRAMS Budget Director, Cam McAbee, presented the following recommendations of the Human Services Allocation Advisory Committee for funding of Community Based Alternatives (CBA) programs and stated due to a possible 2% reduction in State funds, the recommendations have been presented at 98 and 100 percent levels: CBA Agency FY 93-94 Request FY 93-94 - 98% Recommendation FY 93-94 - 100% Recommendation Cape Fear Inner City Outings $ 17,000 -0- -0- Crisis Line Open House $ 85,000 $ 70,000 $ 70,000 Juvenile Restitution $ 37,075 $ 37,075 $ 37,075 Project 1st Stop $ 21,588 $ 20,000 $ 42,399 $ 21,588 $ 13,673 $ 20,679 $ 21,588 $ 17,000 $ 20,679 Youth Connection Juvenile Psycho- logical Services TOTAL $223,062 $163,015 $166,342 If funding is available at the 100 percent level, the Committee is recommending that Youth Connection use $2,000 of the CBA funding to contract with Inner City Outings to provide services to their clients. Youth Connection is a combination of the former Family Services Big Buddy and After School Enrichment programs. The Commissioners were requested to approve the funding recommendations presented by the Human Services Allocation Advisory Committee and authorize the County Manager to execute the FY 1993- 94 grant agreements for the CBA Programs. Motion: Commissioner Sisson MOVED, SECONDED by Vice-Chairman Mathews to approve the CBA funding recommendations at 100% or 98% as submitted by the Human Services Allocation Advisory Committee and authorize the County Manager to execute the FY 1993-94 grant agreements. Upon vote, the MOTION CARRIED UNANIMOUSLY. NEW HANOVER COUNTY BOARD OF COMMISSIONERS REGULAR MEETING, MARCH 15, 1993 BOOK 23 PAGE 370 APPROVAL OF CONTRACT #93-0305 WITH DAVID SIMS & ASSOCIATES CONSULTING ENGINEERS FOR DESIGN OF AN UPGRADED HEATING AND COOLING SYSTEM IN THE NEW HANOVER COUNTY COURTHOUSE AND APPROVAL OF BUDGET AMENDMENT #93-0149 Property Management Director, Winfred Simpson, reported on problems being experienced with the heating and cooling system at the New Hanover County Courthouse due to failure of the pump/well system in delivery of groundwater of sufficient quantity and quality to run the system. An estimate has been obtained in the amount of $161,000 to tie the system into the Law Enforcement Center system. Almost one-half of that cost would be work on the Law Enforcement Center cooling towers which must be done regardless of the need to upgrade the system for the Courthouse. Staff recommends award of a contract to David Sims & Associates Consulting Engineers for design of the new system with approval of the accompanying budget amendment. If the system is not replaced soon, there will be no cooling or heat in the building because of the sludge build up in the pipes from the well to the heat exchanges. The following figures were presented: New Gas Boiler Installation Modification of Existing Circulation Pumps New Booster Pumps Installed Installation of 6" Pipe Installation of Cooling Tower - 240 Tons Miscellaneous Expenses Engineering Subtotal Contingency 12% TOTAL PROJECTED COST $12,000 8,000 11,000 11,000 75,000 15,000 8,000 140,000 21, 000 $161, 000 Motion: Vice-Chairman Mathews MOVED, SECONDED by Commissioner Caster to approve the $8,000 engineering design contract with David Sims & Associates Consulting Engineers for upgrading the heating and cooling system for the New Hanover County Courthouse and to approve the following Budget Amendment. The final award of the contract for purchase and installation of the system will be approved when the cost has been determined and bids have been advertised and received. Upon vote, the MOTION CARRIED UNANIMOUSLY. BUDGET AMENDMENT County Commissioners' Office - Property Management Department 93-0149 Debit Credit County Commissioners' Office Appropriated Fund Balance $161,000 Property Manaqement Department Contracted Services $161,000 Purpose: To transfer funds from Fund Balance to the Department of Property Management/contracted services to upgrade the heating and air conditioning system in the Courthouse. POSTPONEMENT OF REVISIONS TO CHAPTER 7, SOIL EROSION AND SEDIMENTATION CONTROL ORDINANCE IN THE NEW HANOVER COUNTY CODE County Manager O'Neal reported that County Engineer, Wyatt Blanchard, was not able to attend the meeting; therefore, the Board may wish to postpone this item. Motion: Chairman Greer MOVED, SECONDED by Commissioner Barone to postpone this item for consideration at a future meeting. Upon vote, the MOTION CARRIED UNANIMOUSLY. NEW HANOVER COUNTY BOARD OF COMMISSIONERS REGULAR MEETING, MARCH 15, 1993 BOOK 23 PAGE 371 DISCUSSION OF LEGISLATIVE ISSUES County Manager O'Neal presented the following discussion and requested the Commissioners to formulate and write a letter to each member of the Legislative informing them of the Board's position on each bill. bills for an oplnlon Delegation Opposition to House Bill 120 - Revision of the Open Meetings Law After discussion of the need to call Executive Sessions for personnel matters, land acquisition, and attorney-client matters it was concluded that enactment of this amendment will very negatively impact local governments in the handling of personnel matters. It is felt that costly lawsuits will be filed and that the cost of acquiring property will increase. Opposition to House Bill 121 - Revision of the Pubic Records Law After discussion, it was concluded that the County will incur additional costs with being required to provide information in the format requested. Motion: Commissioner Barone MOVED, SECONDED by Mathews to oppose House Bill 120 and House Bill 121 revisions are not in the County's best interest. opened for discussion. Vice-Chairman feeling these The floor was Commissioner Sisson expressed concern for holding Executive Sessions on items that can be discussed in public and stated he is not completely opposed to the bill. He recommended limiting the reasons that a Board can go into Executive Session. Chairman Greer called for a vote on the MOTION to oppose House Bill 120 and House Bill 121. Upon vote, the MOTION CARRIED AS FOLLOWS: Voting Aye: Commissioner Barone Commissioner Caster Vice-Chairman Mathews Chairman Greer Voting Nay: Commissioner Sisson Opposition to Senate Bill 399 - Enactment of a "State Ethics Act" Discussion was held on the intent of the proposed bill being good, but it was concluded that a person's character cannot be legislated. Motion: Commissioner Barone MOVED, SECONDED by Commissioner Caster to oppose Senate Bill 399. Upon vote, the MOTION CARRIED UNANIMOUSLY. Opposition to House Bill 159 - No Excuse Absentee Voting Discussion was held on the fact that voting is a privilege and that persons should be willing to wait in line, if necessary to vote. Further discussion was held on the additional costs that will be incurred by the County for the administration of this program. Motion: Vice-Chairman Mathews MOVED, SECONDED Barone to oppose House Bill 159 due to additional be incurred by the County. Upon vote, the UNANIMOUSLY. by Commissioner costs that would MOTION CARRIED Support of Senate Bill 78 Primary Date Change to the First Tuesday in September Discussion was held on the benefits that would be received by shortening the election process, particularly in reducing the costs to candidates seeking election to public offices. Also, it was felt that reducing the amount of time would generate more interest and increase the number of candidates running for elected positions. NEW HANOVER COUNTY BOARD OF COMMISSIONERS REGULAR MEETING, MARCH 15, 1993 BOOK 23 PAGE 372 Motion: Commissioner Caster MOVED, SECONDED by Commissioner Sisson to support Senate Bill 78 feeling that shortening the political process would be beneficial to all persons involved. Upon vote, the MOTION CARRIED UNANIMOUSLY. APPROVAL OF RESOLUTION TO APPLY FOR SECTION 18 FUNDS FOR NEW HANOVER TRANSPORTATION SERVICES Assistant to the County Manager, patricia Melvin, requested adoption of a resolution to apply for funding under the Section 18 Capi tal Assistance Program of the Federal Transit Act of 1991 administered by the N. C. Department of Transportation for the purchase of three new vehicles (2 lift-equipped, 1 standard). These vehicles are needed to provide non-emergency transportation to the elderly, disabled, medical eligible pregnant women, dependent children, veterans, and other special populations. The grant application is in the amount of $78,350 with $54,845 contributed from federal funds; $11,753 contributed from State funds; and local matching funds of $14,227. Discussion was held on the Southeastern Center withdrawing its participation. This withdrawal has resulted in decreasing the miles driven and the loss of four vans which has prevented the system from growing as rapidly as anticipated. Commissioner Sisson commented on the loss of mileage which has increased the cost per mile from $1.12 to $1.32 and recommended working with the Southeastern Center to continue to utilize Transportation Services for transporting Veterans to the Fayetteville Veterans' Medical Center which would be more cost effective and beneficial to the transportation system. County Manager O'Neal responded that staff will discuss this matter with the Southeastern Center. Motion: After further discussion, Commissioner Sisson MOVED, SECONDED by Vice-Chairman Mathews to adopt the resolution to apply for Section 18 funding. The Chairman was authorized to execute the necessary documents. Upon vote, the MOTION CARRIED UNANIMOUSLY. A copy of the resolution is hereby incorporated as a part of the minutes and is contained in Exhibit XX, Page 24. MEETING RECESSED TO HOLD A MEETING OF THE WATER AND SEWER DISTRICT Motion: Commissioner Sisson MOVED, SECONDED by Commissioner Barone to convene from Regular Session to hold a Regular Meeting of the New Hanover County Water & Sewer District. Upon vote, the MOTION CARRIED UNANIMOUSLY. Chairman Greer convened from Regular Session at 1:25 P.M. Motion: Commissioner Sisson MOVED, SECONDED by Commissioner Caster to reconvene to Regular Session. Upon vote, the MOTION CARRIED UNANIMOUSLY. Chairman Greer convened from Regular Session at 1:35 P.M. MEETING RECESSED FOR LUNCH Chairman Greer recessed the meeting for lunch from 1:36 P.M. until 2:05 P.M. EXECUTIVE SESSION Chairman Greer requested an Executive Session to discuss a legal matter. Motion: Commissioner Caster MOVED, SECONDED by Vice-Chairman Mathews to convene from Regular Session to Executive Session. Upon vote, the MOTION CARRIED UNANIMOUSLY. NEW HANOVER COUNTY BOARD OF COMMISSIONERS REGULAR MEETING, MARCH 15, 1993 BOOK 23 PAGE 373 Chairman Greer convened from Regular Session at 2:05 P.M. Motion: Commissioner Barone MOVED, SECONDED by Commissioner Sisson to reconvene to Regular Session. Upon vote, the MOTION CARRIED UNANIMOUSLY. Chairman Greer reconvened to Regular Session at 2:50 P.M. ADDITIONAL ITEMS - COUNTY COMMISSIONERS Approval of Utility Easement to Carolina Power & Light Company for River Road Park Motion: Vice-Chairman Mathews MOVED, SECONDED by Commissioner Sisson to grant an easement to Carolina Power & Light Company for the provision of electrical service for area lights and restrooms ln the River Road Park. Upon vote, the MOTION CARRIED UNANIMOUSLY. A copy of the easement deed lS on file ln the Legal Department. Adoption of Resolution Authorizing the County to Apply for a Land and Water Conservation Fund Grant for Development of Castle HaYne Park Assistant County Manager, Dave Weaver, requested adoption of a resolution authorizing the County to apply for a Land and Water Conservation Fund grant through the N. C. Department of Environment, Health and Natural Resources in the amount of $45,500 with a County match of $45,500 for development of the Castle Hayne Park. The funds will come from the bond proceeds. Motion: Commissioner Barone MOVED, SECONDED by Commissioner Caster to adopt the resolution authorizing the County to apply for the Land and Water Conservation Fund grant in the amount of $45,500 with a County match of $45,500 for development of Castle Hayne Park. Upon vote, the MOTION CARRIED UNANIMOUSLY. A copy of the resolution is hereby incorporated as a part of the minutes and is contained in Exhibit Book XX, Page 24. Adoption of Proclamation Declaring the Week of March 21-27, 1993 as "RESPECT FOR LAW WEEK" in New Hanover County Motion: Commissioner Sisson MOVED, SECONDED by Vice-Chairman Mathews to adopt a proclamation declaring the week of March 21-27, 1993 as "RESPECT FOR LAW WEEK" in New Hanover County. Upon vote, the MOTION CARRIED UNANIMOUSLY. A copy of the proclamation is hereby incorporated as a part of the minutes and is contained in Exhibit Book XX, Page 24. DISCUSSION OF LEASE AND BY-LAWS OF NEW HANOVER REGIONAL MEDICAL CENTER Chairman Greer stressed the importance of the Board of County Commissioners working more closely with the Hospital Board of Trustees. Emphasis was placed on the fact that the Commissioners are not interested in becoming involved with the daily operation of the hospital, but that the Board does have concern for some items that need to be addressed. An outline was presented on the present control of the Board of Trustees and the present Lease Agreement. Emphasis was placed on this board being treated as all other boards that are appointed by the County Commissioners. Also, it was concluded that the lease should be specifically written to protect the County's ownership of real and personal property if the lease is terminated. The County does not want to experience problems that have recently been incurred with the termination of the lease with the North Wilmington Volunteer Fire Department. NEW HANOVER COUNTY BOARD OF COMMISSIONERS REGULAR MEETING, MARCH 15, 1993 BOOK 23 PAGE 374 The following action was taken: TERMS OF TRUSTEES: It was generally felt that the Trustees should be appointed to the same length of terms as are all other boards appointed by the County Commissioners. The Trustees are now appointed to five (5) year terms with no one serving more than one consecutive full term without a break of at least one full year. Recommendation: The Commissioners recommend reducing the term to three (3) years with each member being eligible for reappointment to another three (3) year term. No member is to serve more than two consecutive three (3) year terms. REMOVAL OF A TRUSTEE: Presently, no Trustee can be removed from the Hospital Board without a recommendation from the Board of Trustees for cause. After a lengthy discussion on what defines "for cause" and the situations that have occurred in the past, it was felt that the Board of County Commissioners should have authority to remove a Trustee. Recommendation: The Board of County Commissioners can remove a Trustee by unanimous vote. RENT: The current annual rent for the hospital building and grounds lS one dollar ($1.00). Discussion was held on the debt serVlce paid by the County on the General Obligation Bonds. Recommendation: Increase annual rent payment to an amount equal to the debt service payment of outstanding hospital General Obligation Bonds. LEASE AGREEMENT The current lease between the County and New Hanover Regional Medical Center is for five (5) years with the requirement that the County give 120 days written notice of intent to terminate the lease and that such notice shall be given after holding a public hearing. Recommendation: The Commissioners recommend reducing the written notice of termination to 90 days notice with deletion of the public hearing requirement. The current lease does not specifically address the disposition of real and personal property if the lease should be terminated. Recommendation: The Commissioners recommend specifically stating that in the event the lease is terminated, all the real and personal property (real estate, equipment, cash, etc.) would be owned by New Hanover County. OWNERSHIP OF REAL PROPERTY: Currently, all buildings on county property are owned by New Hanover County. Any titles (i. e. , equipment, other property) acquired by New Hanover Regional Medical Center are owned by New Hanover Regional Medical Center. Concern was expressed for all property not being in the name of New Hanover County. Recommendation: All real property owned by New Hanover Regional Medical Center should be transferred into New Hanover County's name. Discussion was held on the following topics with the conclusion that no changes are needed: (1) approval of the hospital's annual budget by the County Commissioners; (2) approval of hospital borrowing, incurring, assuming, or guaranteeing indebtedness by the County Commissioners; (3) approval of hospital rates, fees, or charges by the County Commissioners; (4) County approval required for hiring of auditors, architects, and NEW HANOVER COUNTY BOARD OF COMMISSIONERS REGULAR MEETING, MARCH 15, 1993 BOOK 23 PAGE 375 management consultants; (5) extent to which the hospital should be allowed, without County approval, to dispose of hospital facilities and other assets. After further discussion, Commissioner Barone recommended scheduling quarterly meetings with the Hospital Board of Trustees to effectively communicate and discuss hospital concerns. It was generally agreed that more joint meetings should be held and that this item should be presented at the joint meeting scheduled for March 18, 1993. Chairman Greer, again, emphasized the importance of working cooperatively with the Hospital Board of Trustees and pointed out the time and effort given by the Trustees in overseeing the operation of New Hanover Regional Medical Center. ADJOURNMENT Motion: Commissioner Caster MOVED, SECONDED by Commissioner Barone to adjourn. Upon vote, the MOTION CARRIED UNANIMOUSLY. Chairman Greer adjourned the meeting at 3:35 P.M. Respectfully submitted, Lucie F. Harrell Clerk to the Board . . . ~ MINUTES OF REGULAR MEETING, MARCH 15, 1993 PAGE 375 management consultants; (5) extent to which the hospital should be allowed, without County approval, to dispose of hospital facilities and other assets. After further discussion, Cq!IDllissioner Barone recommended scheduling quarterly meetings with the Hospital Board of Trustees to effectively communicate and discuss hospital concerns. It was generally agreed that more joint meetings should be held and that this item should be presented at the joint meeting ~cheduled for March 18, 1993. ' ' Chairman Greer, again, emphasized the importance of working cooperatively with the Hospital Board of Trustees and pointed out the time and effort given by the Trustees in overseeing the operation of New Hanover Regional Medical Center. ADJOURNMENT Motion: Commissioner Caster MOVED, SECONDED by Commissioner Barone to adjourn. Upon vote, the MOTION CARRIED UNANIMOUSLY. Chairman Greer adjourned the meeting at 3:35 P.M. Respectfully submitted, ~0/~ Lucie F. Harrell Clerk to the Board ~